Latvia vs Lithuania: which to choose in 2026

7 min read · Published 7 October 2026

Baltic neighbours with the euro and Schengen: Latvia grants naturalisation after 5 years of permanent residence, Lithuania after 10, but Lithuania has lower salary tax and more grounds for residence. We compare residence, citizenship, taxes, costs and daily life.

Free consultation

Key facts	Verdict
Faster to a passport	Latvia: 5 years with permanent residence vs 10
Lower tax on an ordinary salary	Lithuania: 20% vs 25.5%
Residence for buying a home	no in either
Rent in the capital's centre	$680-910 in Riga, $770-820 in Vilnius
Passport	183 destinations for Latvia, 181 for Lithuania
Currency	the euro in both

Data checked: 07.10.2026

In short: who each country suits

Latvia - for those planning to stay long term who want naturalisation sooner and to keep profit in the company tax-free.
Lithuania - for those who need more grounds for residence, a start-up ecosystem and lower tax on an ordinary salary.
Descendants of citizens of pre-war Latvia and Lithuania can get a passport without moving, and then it depends where the ancestors were from.

Latvia and Lithuania are Baltic neighbours, both in the EU, Schengen, the eurozone and NATO. Neither sells citizenship or residence for buying property: Latvia closed that route with a new immigration law from 15 September 2026. They differ in the time to a passport, taxes and the grounds on which residence is easier to obtain.

Below are one table of 15 rows and the five main differences: residence, the path to citizenship, taxes, cost of living and daily life.

We will calculate online the full cost for your task.

Calculate online

Key facts in one table

Parameter	Latvia	Lithuania
Grounds for residence	work, own company, family, study	work, own company, start-up, Lithuanian descent, family, study
Residence for buying a home	no, since 15 September 2026	no
Residence through your own company	under the new immigration law	capital from $32,000, six months of trading and staff
Citizenship by naturalisation	5 years with permanent residence, language and history tests	10 years of permanent residence, language and constitution tests
Citizenship by descent	for descendants of citizens as of 17 June 1940, no test	for children, grandchildren and great-grandchildren of citizens before 15 June 1940
Current passport	kept only by citizens of EU and NATO states and a few others	as a rule, must be renounced
Who is a tax resident	183 days or more in any 12 months that start or end in the tax year	183 days in a calendar year, or 280 days over two consecutive years with 90 days in one of them
Tax on salary	25.5%, 33% above $120,000 a year	20%, 25% and 32% by annual income
Corporate profit tax	20% on distributed profit only	17%
One-bedroom flat in the capital's centre	$680-910 (Riga)	$770-820 (Vilnius)
Average wage	~$2,200 before tax	higher than in Latvia
Country's passport: visa-free travel	139 countries visa-free and 28 with visa on arrival	137 countries visa-free and 28 with visa on arrival
Currency	euro	euro
Population	about 1.9 million	about 2.9 million

Latvia or Lithuania is decided by the grounds for residence and the time to a passport

Both use the euro and are in Schengen, but since 15 September 2026 Latvia no longer grants residence for buying property, while Lithuania requires a company used for residence to have traded for six months with local staff. The law does not stop you applying on your own. But mistakes cost more: grounds that will not be renewed, a company with no real activity, incomplete income documents and a refusal that forces you to leave. We choose the grounds for your income and family, prepare the documents and handle the case up to the card. We guarantee professional work and a transparent process, and in most cases a result on the first application.

The cost of support depends on the country, the grounds and your family; a manager will calculate it in the chat.

Get a support quote

Residence: where is it easier to get

In Latvia a new immigration law has applied since 15 September 2026: residence is granted for work, your own company, family or study, while buying property and bank deposits no longer count. Permanent residence comes after 5 years.

Lithuania grants residence for work, your own business, a start-up approved by a state agency, Lithuanian descent, study and family. A company used for residence must have capital from $32,000, have traded for six months and employ staff. The issue fee is about $190 and a decision takes up to 4 months.

Citizenship: where is it faster

In Latvia naturalisation is possible after 5 years with permanent residence, with tests in Latvian, history and the constitution. Only citizens of EU and NATO states and a few other countries keep their previous passport; others renounce it.

In Lithuania naturalisation takes 10 years of permanent residence, with tests in Lithuanian and the constitution and, as a rule, renunciation of the previous citizenship. Both countries restore citizenship to descendants of citizens of the pre-war republics without residence or a language test.

Taxes: where are they lower

Latvia takes 25.5% income tax on salaries and 33% on income above about $120,000 a year, and social contributions on salaries are 34.09%. But profit a company keeps in the business is not taxed: the 20% is paid only when dividends are distributed.

Since 2026 Lithuania adds up all income for the year and taxes it at 20%, 25% and 32%; corporate tax is 17% and dividends 15%. For an ordinary salary Lithuanian tax is lower than Latvian; for a business that reinvests profit, Latvia is better.

Cost of living: where is it cheaper

Rent in the capitals is similar: a one-bedroom flat in central Riga costs $680-910 and in central Vilnius $770-820. In Riga one person needs $1,300-1,900 a month with rent. The item people underestimate in both countries is winter heating in older buildings.

Wages in Lithuania are higher than in Latvia and the economy is growing faster, so prices for services in Vilnius are catching up with and in places overtaking Riga. Groceries cost about the same in both.

Daily life: what is different

Riga is the largest city in the Baltics, with Art Nouveau architecture, the sea half an hour away and a large Russian-speaking community. That helps at the start, but citizenship and public sector jobs require Latvian.

Vilnius is a compact capital with a fast-growing market for tech companies and fintech start-ups, and more English in business. Lithuania has a larger population, and its capital is inland: the coast is at Klaipėda and Palanga.

This topic in other countries

Other country comparisons:

FAQ

Which is better for a move: Latvia or Lithuania?

Latvia for faster naturalisation and a business that keeps profit in the company. Lithuania for work, a start-up and lower tax on an ordinary salary.

Where is citizenship faster: Latvia or Lithuania?

In Latvia, after 5 years with permanent residence. In Lithuania, after 10 years of permanent residence.

Where are taxes lower: Latvia or Lithuania?

On an ordinary salary, Lithuania: 20% against 25.5%. Only Latvia does not tax a company's retained profit.

Is it cheaper to live in Riga or Vilnius?

Rent is similar: $680-910 in central Riga and $770-820 in central Vilnius. Services in Vilnius are getting more expensive faster.

Can you get residence in Latvia or Lithuania for buying property?

No. Latvia removed that ground from 15 September 2026, and Lithuania does not have it.

Can you keep your previous passport with Latvian or Lithuanian citizenship?

In Latvia, only citizens of EU and NATO states and a few other countries. In Lithuania, as a rule, renunciation is required.

Don’t want to figure this out alone?

We handle the whole process end to end: we check your documents, match a program to your situation and give you honest timelines and costs. Ask your question in the chat: the free consultation starts right here. Legal representation before authorities and courts is handled by Murblz specialists together with locally licensed partners.

The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.

Free consultation

Or message us on Telegram →

FreeConfidentialInstant reply

Programs

Programs in these countries

Latvia:

Repatriation

Lithuania: